MUMBAI: InfosysBSE -0.93 % said it would buy automation technology company Panaya Inc, at an enterprise value of about $200 million, as the third-largest IT company in the country looks to boost competitiveness and margins.

The Bangalore-based firm said Panaya’s technology would help it bring automation to several service lines through a software-as-a-service model, reducing risks and costs and the time taken to bring services to the market.

“The acquisition of Panaya is a key step in renewing and differentiating our service lines. This will help amplify the potential of our people, freeing us from the drudgery of many repetitive tasks, so we may focus more on the important, strategic challenges faced by our clients,” Vishal Sikka, CEO of Infosys, said in a statement.